Investing with a Gender Lens
May 10, 2013
This post was originally published on TriplePundit
By Marlena John
As a woman entering the finance world, the title of the session at the Slow Money National Gathering, Female Investors: The Most Important Change Agents on Earth, certainly sparked my interest.
Don Shaffer, President & CEO of RSF Social Finance started by telling the story of when he was a golf caddy in New Jersey, slinging golf clubs for Wall Street traders and bankers. Back then, women were not allowed on the golf course, which reflected the situation of most of Wall Street and the finance industry as a whole. The few women who did work in finance got paid a lot less than the men.
Fast-forward twenty or so years. There are a lot more females in the field, taking leadership in investment opportunities, and playing golf. The Equal Pay Act of 1963, signed by President Kennedy, prohibited pay differences based on sex. Great! But, if you think that everything is hunky dory, then you’d be wrong. As it turns out, women are still making less money than men on average, and this is particularly true on Wall Street. Shaffer claims that females on Wall Street make 55-62 percent as much as males do, though I’ve seen statistics that claim it is as high as 77 percent. Even if the 77 percent stat is accurate, women in finance are experiencing a significant, and unwarranted, pay gap.
So, women are getting paid less, and that’s not cool. We also have many more men than women investing and working in finance. But why should we care how many women investors there are? Don Shaffer laid it out well.